Washington, D.C. – Following the release of new text for the Clarity Act, the Bank Policy Institute issued the following statement:
“We support the establishment of a regulatory framework for digital assets that protects Main Street’s access to credit, stops criminals and bad actors from financing their illicit operations with anonymity and impunity and safeguards America’s national security interests. Unfortunately, the new Clarity Act text still does not address the bill’s shortcomings on these issues.
“The Clarity Act needs a stronger prohibition on interest-like payments for holding stablecoins. Current language in the bill would still allow for ways to pay interest and yield for holding stablecoins, beyond the permitted allowance for rewards based on stablecoin transactions and activities, which will siphon bank deposits and threaten local lending and economic activity across the country.
“The Clarity Act continues to have AML gaps that promote pathways for illicit finance and could jeopardize U.S. national security. The bill must ensure that all Digital Asset Service Providers and other intermediaries are subject to the same robust requirements under the Bank Secrecy Act (BSA) as banks. It must also authorize Treasury to sanction mixers and tumblers, which criminals routinely use to hide illegal activity from law enforcement. Lastly, it must ensure that companies cannot evade their financial, legal and national security obligations under U.S. law by pretending to be ‘DeFi’ or by incorporating abroad.
“We appreciate Senators working to resolve these issues as the process moves forward.”
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About Bank Policy Institute
The Bank Policy Institute is a nonpartisan public policy, research and advocacy group that represents universal banks, regional banks and the major foreign banks doing business in the United States. The Institute produces academic research and analysis on regulatory and monetary policy topics, analyzes and comments on proposed regulations, and represents the financial services industry with respect to cybersecurity, fraud and other information security issues.
Media Contact
Sam Fabens
Bank Policy Institute
sam.fabens@bpi.com
